15. The Hardy Company ceased operations in its Illinois plant on July 1. On August 1, it was...

15. The Hardy Company ceased operations in its Illinois plant on July 1. On August 1, it was decided to dismantle the equipment and sell the plant. The cost of dismantling the equipment was $7,000. The equipment was sold as scrap, and second-hand equipment was sold for $20,000. The plant was sold for $120,000, and there were expenses of $6,000 connected with the sale. Depreciation was last accrued on the plant and equipment on the previous December 31. The January 1 balances in the plant and equipment accounts of the Illinois plant

were as follows:

Plant

$2,000,000

Plant, Accumulated Depreciation

1,550,000

Equipment

400,000

Equipment, Accumulated Depreciation

320,000

The building depreciation was $4,000 per month, and the equipment depre- ciation was $3,000 per month.

Prepare journal entries to record the depreciation for the period and also the retirement of the plant and equipment of the Illinois plant.

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